Home Depot Inc. on Tuesday cut its annual sales forecast and projected a steeper-than-expected decline in profit, stoking fears about inflation-wary consumers trimming discretionary spending as a big earnings week for U.S. retailers rolls out.
Shares of the largest U.S. home improvement chain, which also blamed a wet start to Spring and falling lumber prices for a first-quarter sales miss, tumbled about 4 percent, while those of smaller rival Lowe’s Cos Inc. dropped nearly 3 percent.
Home improvement retailers have lost their pandemic-era sparkle as Americans cut back spending on remodeling their living spaces, with persistent inflation dragging consumer sentiment to a six-month low in May.
Demand was weak for discretionary items like patio furniture and grills, as well as appliances, flooring, kitchen and bath, said William Bastek, executive vice president of merchandising at Home Depot.A shift in […]
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